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Informist, Friday, Jul. 10, 2026

 

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--Bank of Maharashtra: Committed to NII growth guidance of 15% 
--CONTEXT:Comments by Bk of Maharashtra's mgmt in post-earnings analyst call 
--Bank of Maharashtra: Maintain FY27 guidance for advances growth at 18% 
--Bank of Maharashtra: Adequately capitalised, no urgent need to raise funds 
--Bank of Maharashtra: See no issue in making extra provisions for ECL norms 
--Bank of Maharashtra: Will try to do maximum utilisation of RBI FCNR scheme 

 

By Diksha Tripathy and Pratiksha

 

MUMBAI – Bank of Maharashtra maintained its loan growth guidance of 18% for the financial year 2026-27 (Apr-Mar) despite posting a much higher year-on-year increase in advances in the June quarter, the bank's senior management said during a post-earnings conference call with analysts Friday. The bank's loan book is seeing traction from all verticals such as the retail segment, agriculture segment, micro, small, and medium enterprises segment, and even the corporate segment, the top management of Bank of Maharashtra said. 

 

"I would not like to look at, relook at, revisit our guidance of 18% growth," Managing Director and Chief Executive Officer Nidhu Saxena said. "But I think the way things are happening, it looks that we are able to perform likewise to other places in the industry at a higher level. But we will maintain the guidance at 18%."

 

Bank of Maharashtra's total advances in the June quarter were up 27% on year at INR 3.02 trillion. Of the 27% growth, 3?me from its unit at the International Financial Services Centre, Saxena said, giving the break-up of the growth in total advances for the quarter. The International Financial Services Centre banking unit holds a sizeable portion in the loan book, with contribution of almost INR 82 billion so far in nearly nine months. The remaining 24% of growth in advances is from various verticals of the bank, the chief executive officer said.

 

The bank also recorded robust 30% year-on-year corporate loan growth in the quarter, Saxena said. "We are maintaining this kind of high double-digit corporate loan growth. For the last four quarters I'm seeing it is 17%, 18% and this time it is almost 30%," he said. Saxena affirmed optimism around the double-digit growth and said it is expected to continue.

 

The senior management said the bank remains adequately capitalised and has no urgent need to raise funds. The bank has acquired INR 190 billion worth of refinanced loans from other lenders, against INR 140 billion-INR 150 billion last year. The bank also has a board-approved capital-raising plan to raise INR 50 billion through equity in FY27. The bank has also received approval for the plan from the Reserve Bank of India, it said. The proposal has been forwarded to the government for its approval.

 

"Any time, opportune time during this FY (FY27), to support our fast credit growth, we can raise equity also," Saxena said. "While I'm adequately capitalised, I don't have an urgent, dire need to raise, to maintain, but this is how we are looking at it."

 

While discussing the refinancing option, Saxena highlighted the need for a fresh look at dependence on individual deposits and the bank's growth plans. He flagged the shift to other asset classes, such as systematic investment plans and mutual funds, by consumers, which is expected to weigh on deposit growth and increase the need for refinancing options. "Today, if you see the ecosystem, there is a marked shift of consumers to other asset classes," the managing director said.

 

The bank sees no challenge in creating extra provisioning for the new expected credit loss norms, senior officials said. The new norms will become applicable from Apr. 1.

 

Bank of Maharashtra’s management called the new foreign currency non-resident bank deposits scheme by the RBI an opportunity to raise dollar deposits and get liquidity for its Indian operations. The bank will aim for maximum utilisation of the new norms, it said. 

 

"Now we are offering for a five-year FCNR deposit a rate of 6.60%, which compares us with the best offers that are available in the industry, definitely from the PSB (public-sector banks) space," Saxena said. "And we are now working around the strategies, the ways to do the reach-out as well, and see how maximum utilisation or traction we can build around this."

 

During market hours Friday, Bank of Maharashtra reported a net profit of INR 20.20 billion for the June quarter, up 27% on year. Its total income for the quarter grew 15% on year to INR 90.63 billion. The state-owned lender's shares ended at INR 84.25 apiece on the National Stock Exchange, up 2.7% from Thursday.  End

 

Edited by Rajeev Pai

 

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